Expansion of EV shares in China and Europe is slowing down

In 2022, it is predicted that global BEV+PHEV registrations would account for 13% of all new vehicle sales. In 2023, this proportion is projected to rise to 15%. Assisted by "front loading" and the phase-out of subsidies, EV sales in China increased dramatically in 2022. With 6.5 million new BEVs and PHEVs in 2022, China is expected to surpass Europe as the world's largest EV market. The increase of the EV share in new sales, however, is anticipated to be severely slowed by the end of direct financial incentives (only 5% tax exemption is left). In China, it is anticipated that 28 new automobiles out of every 100 will be electric by 2023.
A number of European nations, including Norway, Sweden, Germany, the Netherlands, and the UK, are also making adjustments to their budgetary support for electric vehicles, pushing Europe as a whole toward a path of slower development. On the other side, the US is currently catching up more swiftly due to a credit limit of $7,500. In 2023, (plug-in hybrid) electric vehicles are anticipated to make up one out of every ten new automobiles and light trucks sold in the second-largest auto market in the world.

Estimated battery prices have risen to little over $150 per kWh for the first time due to supply restrictions brought on by underinvestment and the conflict in Ukraine (BNEF). This is similar to levels in 2020. The decreasing trend is unlikely to take up this year due to continuously high battery materials prices and impending shortages. This implies that even if more cheap models are released, price parity with conventional automobiles will be delayed and financial help for mainstream drivers will still be required. The decrease in government assistance in the mentioned nations clashes with this. Higher charging fees also increase expenses, particularly in Europe where an increasing percentage of potential EV drivers lack access to home charging.

However, from a corporate perspective, an even greater push for EVs in Europe in 2023 is expected as companies must disclose emissions and work to hasten the decarbonization of their fleets of vehicles. After 2025, several nations may even mandate the use of electric vehicles for business automobile leasing. Sales of EVs will also continue to be influenced by production. The supply of semiconductors has increased, but EVs still need more chips. Additionally, the shortage of batteries also explains why automakers like GM, Ford, and Tesla are cooperating with mining firms.

Source: ING

Get ‘FREE OF CHARGE’ access to 450+ other valuable EV Market Reports in our database. Enjoy reading!

Chart showing the share of EVs in key markets from 2015 onwards
Expansion of EV shares in China and Europe is slowing down Source: ING
Related news

Europe considers tariff hike on Chinese EVs to boost local industry

In a bold move to reshape its industrial and trade policy amidst the booming electric vehicle…

read more
Electric Vehicles
Europe
Published by: Editorial board | March 28, 2024

Driving the Next Phase of Electric Mobility in Europe

Europe has positioned itself at the forefront of the global shift towards electric mobility, a critical…

read more
Electric Vehicles
Europe
Published by: Editorial board | March 27, 2024

The evolving landscape of the Electric Vehicle market in Thailand

The landscape of Thailand’s Electric Vehicle (EV) market is at a pivotal juncture, spurred by global…

read more
Electric Vehicles
Asia
Published by: Editorial board | March 26, 2024

Allianz forecasts the electric horizon in the automotive market

As the automotive market edges closer to a more sustainable and electric future, it navigates through…

read more
Electric Vehicles
Global
Published by: Editorial board | March 25, 2024